The resurgence of excitement around Exchange-Traded Funds (ETFs) is palpable, particularly following the notable return of Donald Trump to the political scene. Adding to this momentum, Canary Capital has made a strategic move by submitting an S-1 registration with the U.S. Securities and Exchange Commission (SEC). This filing is aimed at launching the inaugural Hedera (HBAR) spot ETF, which would give investors the opportunity to gain direct exposure to HBAR, the native cryptocurrency of the Hedera Network.
Canary Capital Explores the Growing Demand for HBAR
Canary Capital’s recent filing with the SEC marks a significant milestone in the cryptocurrency investment landscape. The proposed ETF focuses exclusively on Hedera’s HBAR token, and if approved, it would be the first publicly traded ETF to offer investors a regulated pathway to access HBAR’s value. This development is particularly noteworthy as it allows investors to engage with HBAR without the need to directly purchase or hold the token themselves.
An S-1 registration is a standard procedure for companies aiming to go public or introduce new investment products such as ETFs. This filing demonstrates Canary Capital’s commitment to providing a secure and regulated investment vehicle for HBAR, making it more accessible to the broader market.
HBAR serves as the native cryptocurrency of the Hedera network, which operates on the innovative Hashgraph consensus algorithm. This decentralized public network is designed to facilitate rapid and secure global transactions. The network’s governance is overseen by a council of major corporations and organizations, ensuring compliance and secure decision-making processes. Within the Hedera ecosystem, HBAR plays a vital role by powering decentralized applications, supporting transactions, and contributing to network governance.
The Canary HBAR ETF, as detailed in its S-1 filing, is committed to investing solely in HBAR without utilizing derivatives, futures, or other complex financial instruments. Although the filing has yet to specify a custodian or administrator, the focus remains clear on providing a straightforward investment path.
Founded by Steven McClurg, who is also the visionary behind Valkyrie Funds known for its spot crypto ETFs, Canary Capital previously launched an HBAR Trust in October for accredited investors. Furthermore, Canary Capital has expressed intentions to register other spot cryptocurrency ETFs, including those for Litecoin, Solana, and XRP, further diversifying its investment offerings.
The Intriguing Dynamics Between Trump and the SEC
The approval of additional spot crypto ETFs by the SEC is still shrouded in uncertainty. Earlier this year, the SEC greenlit 11 spot bitcoin ETFs and subsequently approved eight Ethereum ETFs. These developments have fueled speculation that Gary Gensler, the current SEC Chair known for his cautious stance on cryptocurrencies, might step down as the presidential administration transitions.
President-elect Donald Trump has publicly indicated his desire to replace Gensler upon taking office. Trump’s team is currently considering potential candidates for the SEC chairmanship, with notable names such as Robinhood’s Chief Legal Officer Dan Gallagher, former Republican SEC commissioner Paul Atkins, and Robert Stebbins, a former SEC general counsel, being among the contenders.
However, it’s crucial to note that Trump cannot legally remove Gensler without a valid justification. While it is common for regulatory heads to resign following a change in the political landscape at the White House, Gensler has not signaled any intention to vacate his position. The unfolding dynamics between Trump and the SEC continue to be a point of interest for both investors and political analysts.
